SHARING CANADA’S PROSPERITY – A HAND UP, NOT A HANDOUT Final Report Special Study on the involvement of Aboriginal communities and businesses in economic development activities in Canada The Honourable Gerry St. Germain, P.C. Chair The Honourable Nick Sibbeston Deputy Chair Standing Senate Committee on Aboriginal Peoples March 2007 Ce document est disponible en français. Available on the Parliamentary Internet: www.parl.gc.ca th st (Committee Business — Senate — 39 Parliament, 1 Session) This report and the Committee proceedings are available online at www.senate-senat.ca Hard copies of this document are also available by contacting the Senate Committees Directorate at 613-990-0088 or at [email protected] TABLE OF CONTENT MEMBERSHIP.................................................................................................................. i 39th Parliament, 1st Session .............................................................................................. i 38th Parliament, 1st Session ............................................................................................iii ORDER OF REFERENCE.............................................................................................. v PREFACE........................................................................................................................ vii EXECUTIVE SUMMARY ............................................................................................. ix PART I: INTRODUCTION............................................................................................. 1 DEFINING ECONOMIC DEVELOPMENT............................................................. 2 Aboriginal Perspectives on Economic Development ......................................... 4 SOME KEY BARRIERS TO ECONOMIC DEVELOPMENT ................................ 6 Access to Capital................................................................................................. 6 Legislative and Regulatory Barriers ................................................................... 7 Limited Access to Lands and Resources ............................................................ 7 Building Human Capital ..................................................................................... 7 Infrastructure Deficits ......................................................................................... 7 Lack of Governance Capacity............................................................................. 8 Fragmented Federal Approach to Economic Development and Limited Funding........................................................................................... 8 FACTORS CONTRIBUTING TO ECONOMIC SUCCESS..................................... 8 Leadership and Vision ........................................................................................ 9 Understanding the Complementary Roles of Politics and Business................... 9 Legitimacy of Economic Development Activities............................................ 11 Identifying Your Best Features......................................................................... 11 Qualified Labour Force..................................................................................... 12 Partnerships with Industry ................................................................................ 13 CONCLUSION......................................................................................................... 13 PART II: NEED FOR NEW APPROACHES TO ABORIGINAL ECONOMIC DEVELOPMENT ........................................................................................................... 15 Meaningful Investments.................................................................................... 15 Renewed Policy Framework............................................................................. 19 Central Economic Development Agency.......................................................... 22 FEDERAL ABORIGINAL ECONOMIC DEVELOPMENT PROGRAMS........... 24 Restoring funding to economic development programs ................................... 24 Procurement Strategy for Aboriginal Business................................................. 28 PART III: INDIAN ACT BARRIERS TO ECONOMIC DEVELOPMENT ON RESERVE........................................................................................................................ 31 Indian Act Barriers............................................................................................ 32 Conclusion: Is Privatizing Reserve Lands An Alternative? ............................. 37 PART IV: SECURING ACCESS TO LANDS AND RESOURCES ......................... 39 Changing the Opportunity Structure: The Importance of Lands and Resources......................................................................................... 39 Capacity to Manage Lands and Resources ....................................................... 44 Conclusion ........................................................................................................ 46 PART V: INSTITUTIONAL DEVELOPMENT (GOVERNANCE.......................... 47 PART VI: TRAINING AND EDUCATION ................................................................ 55 Education and training must more adequately respond to needs...................... 59 PART VII: LOCATION, SIZE AND INFRASTRUCTURE ..................................... 63 Location and size .............................................................................................. 63 Infrastructure..................................................................................................... 65 Conclusion ........................................................................................................ 67 PART VIII: PARTNERSHIPS WITH INDUSTRY.................................................... 69 PART IX: THE ECONOMIC VALUE OF TRADITIONAL ECONOMIES ......... 75 PART X: CLOSING THE ECONOMIC GAP ............................................................ 79 APPENDIX A DEMOGRAPHIC AND ECONOMIC CONDITIONS OF ABORIGINAL PEOPLE IN CANADA APPENDIX B LIST OF RECOMMENDED ACTIONS BY PART APPENDIX C Witnesses Heard and Briefs Submitted 38th Parliament, 1st Session (October 4, 2004 – November 29, 2005) APPENDIX D Witnesses Heard and Briefs Submitted 39th Parliament, 1st Session (April 3, 2006 - …) MEMBERSHIP THE STANDING SENATE COMMITTEE ON ABORIGINAL PEOPLES 39TH PARLIAMENT, 1ST SESSION (April 3, 2006 - …) The Honourable Gerry St. Germain, P.C. Chair The Honourable Nick G. Sibbeston Deputy Chair and The Honourable Senators: Larry W. Campbell Lillian Eva Dyck Aurélien Gill Leonard Gustafson *Céline Hervieux Payette, P.C. (or Claudette Tardif) Elizabeth Hubley *Marjory LeBreton, P.C. (or Gerald Comeau) Sandra Lovelace Nicholas Robert W. Peterson Hugh Segal Charlie Watt *Ex officio members Other Senators who have participated from time to time on this study: The Honourable Senators Andreychuk, Banks, Cochrane, Cook, Johnson, Nolin, Smith, P.C., Trenholme Counsell, Tkachuk and Zimmer. Committee Clerk: Gaëtane Lemay Analysts from the Parliamentary Information and Research Service of the Library of Parliament: Tonina Simeone Frédéric Beauregard-Tellier Lisa L. Patterson i THE STANDING SENATE COMMITTEE ON ABORIGINAL PEOPLES 38TH PARLIAMENT, 1ST SESSION (October 4, 2004 – November 29, 2005) The Honourable Nick G. Sibbeston Chair The Honourable Gerry St. Germain, P.C. Deputy Chair and The Honourable Senators: *Jack Austin, P.C (or William Rompkey, P.C.) John Buchanan, P.C. Larry W. Campbell Andrée P. Champagne, P.C. Ione Jean Christensen Leonard Gustafson *Noël A. Kinsella (or Terrance Richard Stratton) Sandra Lovelace Nicholas Robert W. Peterson Charlie Watt Rod A. A. Zimmer *Ex officio members Other Senators who have participated from time to time on this study: The Honourable Senators The Honourable Senators Adams, Angus, Banks, Fitzpatrick, Forrestall, Gill, Hubley, Léger, Mahovlich, Mercer, Pearson, Tardif and Trenholme Counsell. iii ORDER OF REFERENCE Extract from the Journals of the Senate, Tuesday, May 9, 2006: The Honourable Senator St. Germain, P.C., moved, seconded by the Honourable Senator Segal: That the Standing Senate Committee on Aboriginal Peoples, in accordance with rule 86(1)(q) of the Senate, be authorized to examine and report on the involvement of Aboriginal communities and businesses in economic development activities in Canada. In particular, the Committee shall be authorized to investigate elements that enable Aboriginal communities and businesses to succeed and obstacles to their achievement in all areas of the economy, including but not limited to: large-scale industrial developments such as pipelines; non-renewable resource developments in oil, gas and mining; renewable resource development; tourism; business services; and other related matters; That the papers and evidence received and taken during the First Session of the Thirty-Eighth Parliament be referred to the Committee; That the Committee report to the Senate from time to time, but no later than June 30, 2007 and that the Committee retain until September 1, 2007, all powers necessary to publicize its findings. After debate, The question being put on the motion, it was adopted. Paul C. Bélisle Clerk of the Senate v PREFACE In November 2004, the Standing Senate Committee on Aboriginal Peoples agreed to undertake a study examining issues concerning Aboriginal economic development. In particular, the Committee sought to understand what accounts for the economic success of